Internal Audit Audit Plan 201011 by kyh12442


									                             (Audit Committee – 25 February 2010)

Somerset County Council
Audit Committee – 25 February 2010
                                                                              Paper    D
                                                                                Item No. 8
Internal Audit: Audit Plan 2010/11
Corporate Director: Roger Kershaw (Resources)
Lead Officer: Jacky Barnes – Chief Internal Auditor
Authors:     Ian Baker – Group Auditor
             Jacky Barnes – Chief Internal Auditor
Contact Details: e-mail: or tel: 07917 628774
Cabinet Member: David Huxtable
Division and Local Member: All
1.     Summary/link to the Annual Plan

1.1.   To provide Members with the details of the internal audit plan for 2010/11.

2.     Issues for Consideration

2.1.   Members are asked to review and formally approve the Internal Audit Plan.

3.     Background

3.1.   The annual internal audit plan is derived from a four year strategic audit plan that
       was devised with the co-operation and approval of the Section 151 Officer. The
       plan is risk based and, where possible, is co-ordinated with the audit plans of the
       other members of the South West Audit Partnership (SWAP).

       Although the annual audit plan is derived from a long-term strategic plan, SWAP
       regularly reviews the risk status and ranking of all auditable entities with
       management. This is to ensure that the highest risk areas are always given
       priority for internal audit review.

       As part of the SWAP partnership strategy, a number of audits planned for next
       year will be carried out across all the partnership. Joint audits of this kind derive
       real benefits in both reducing the overall time taken and in the shared lessons
       that can be learnt by all the partners.

3.2.   The audit plan is broken into four main areas of activity as detailed below. The
       operational reviews are comprehensive in nature and cover the entire range of
       risks and controls. A detailed report is issued at the end of the audit review and
       an agreed action plan devised.

       Governance, Fraud and Corruption reviews will support the Annual Statement of
       governance prepared by the Group Manager, Governance and best practice
       reports will be produced across the Partnership.

                            (Audit Committee – 25 February 2010)

3.3.   Key control reviews are carried out in support of the work done by the Audit
       Commission and focus on financial control. These reviews are carried out
       annually between October and December. A report is issued for each review
       providing an assessment of the viability of controls in all areas and
       recommending improvements, where appropriate. Where a full operational audit
       is planned for one of the areas normally covered under the key control review,
       the work is then combined and co-ordinated.

       We have adopted our approach to auditing Schools. The audits will be ‘theme’
       based across a selected sample of Schools and then a summary report sharing
       best practice and identified areas of weakness will be circulated through the
       Directorate. The three-year cycle of FMSiS assessments begins again from 1
       April 2010.

       In addition to our core audit work, as described above, internal audit also provide
       a range of other services including risk advice, follow-up reviews, specialist
       advice and special investigations.

3.4.   Operational Reviews:

       The following Operational Reviews have been planned for 2010/11:

                   DIR     AUDIT AREA                                 DAYS
                   COM     Financial Assessments and Benefits         15
                   COM     Business Development                       15
                   COM     Mental Health                              20
                   COM     Community Development                      10
                   COM     Community Safety and Substance Abuse       25
                   COM     Community Contracts and Partnerships       25
                   COM     LD – Assessment and Care Management        25
                   CYP     YP Workforce Development                   10
                   CYP     SEN – Casework Service                     20
                   CYP     Planning – Schools Organisation            15
                   CYP     Planning – Sites and Buildings             15
                   CYP     Planning – Transport                       15
                   CYP     Building Schools for the Future            5
                   CYP     Pupil Referral Service                     15
                   CYP     YP with Disabilities/Impairment            25
                   CYP     Further Education Funding                  15
                   CYP     Joint Commissioning                        5
                   CYP     Youth Work and Connect SW                  5
                   CYP     Family Outreach                            20
                   CYP     Contact Point                              5
                   CYP     Referral/Assessment for Children in Need   25
                   CYP     Residential Units                          20
                   ENV     Sustainable Construction                   15
                   ENV     Waste and Recycling                        35
                   ENV     Contract Management – Governance           20
                   ENV     Contract Management - Performance          20
                   ENV     Gypsy and Traveller Services               20
                   ENV     Land Charges and Commons Registration      20
                   ENV     Road Safety                                10
                   ENV     Civil Contingencies                        20
                   RES     Creditors                                  25
                   RES     Debtors                                    20

                           (Audit Committee – 25 February 2010)

                  RES     Payroll                                       30
                  RES     Pensions Payroll                              15
                  RES     Insurance Claim Risk Assessments              10
                  RES     Absence Management                            15
                  RES     Expense Claims                                15
                  RES     Contract Management – Property                20
                  RES     Legal Services                                25

                                                            TOTALS:     685

3.5.   Non Opinion Reviews

       The following allowances have been included for Non Opinion reviews:

                  DIR     AUDIT AREA                                    DAYS
                  CYP     Early Years – Family Outreach                 25
                  ENV     Hinkley Point                                 15

                                                            TOTALS:     40

3.6.   Governance, Fraud and Corruption Reviews

       The following Governance, Fraud and Corruption Reviews have been planned:

                  DIR     AUDIT AREA                                    DAYS
                  COR     Equalities & Diversity – Impact Assess        16
                  COR     Partnership Arrangements                      20
                  COR     Health & Safety (Awareness & Training)        10
                  COR     Bus. Continuity (Partners & Contracts)        16
                  COR     Procurement (Category Management)             20
                  COR     Income Collection                             16
                  COR     Fees & Charges                                10
                          Gifts & Hospitality/Register of Interests -   5
                  COR     Staff
                          Gifts & Hospitality/Register of Interests -   5
                  COR     Members
                  COR     NI 188 – Use of Natural Resources             10
                  COR     NI 179 – Efficiency Statements                10
                  COR     Risk Management                               20
                  COR     Data Quality PI’s SWOne                       10
                  COR     Data Quality PI’s                             10

                                                            TOTALS:     178

                            (Audit Committee – 25 February 2010)

3.7.   Key Control Audits

       The following Key Control Audits have been planned:

                    DIR   AUDIT AREA                               DAYS
                    RES   Creditors (Operational)                  0
                    RES   Debtors (Operational)                    0
                    RES   Pensions                                 20
                    RES   Main Accounting                          20
                    RES   Treasury Management                      20
                    RES   Capital Accounting                       10
                    RES   Payroll (Operational)                    0

                                                         TOTALS:   70

3.8.   IS Reviews

       The following IS Reviews have been planned:

                    DIR   AUDIT AREA                               DAYS
                    CYP   Contact Point                            12
                    RES   IT Strategy                              12
                    RES   SAP PIR                                  40
                    RES   Corporate IS Level 1 Review              12
                    RES   Property Terrier (GENSIS or SAP)         17
                    RES   Galaxy System (Libraries Mgt System)     17
                    RES   MS Exchange (email System Admin)         12
                    RES   EMS Capita One (System Admin)            12
                    RES   IT Hardware Asset Management             12

                                                         TOTALS:   146

                             (Audit Committee – 25 February 2010)

3.9.   Summary

       The annual audit plan is summarised and compared with 2009/10 as follows:

               AUDIT TYPE                                       DAYS    2009/10
               Operational                                      685     565
               Non Opinion                                      40      115
               Governance, Fraud and Corruption                 178     137
               Key Control                                      70      120
               IS Reviews                                       146     169
               Schools & FMSiS                                  540     662
               Follow Up                                        40      20
                                              TOTAL REVIEWS:    1,699   1,788
               Grants                                           80      80
               Exmoor National Park                             40      40
               Connect South West                               20      20
               South West Councils                              20      20
               Severn Park Training Centre                      40      40
               Somerset Waste Partnership                       40      35
               SW Information Security Group                    4       0
                      TOTAL GRANTS & EXTERNAL CLIENTS:          244     235
               Corporate and General Advice (inc Schools)       120     100
               Special Reviews (Contingency)                    20      0
               Corporate Meetings                               30      30
               External Audit                                   10      10
                                          ADVICE & SUPPORT:     180     140

                                         TOTAL PLAN DAYS:       2,123   2,163

4.     Consultations undertaken

4.1.   Consultation has been carried out with the Group Manager, Governance, each
       Directorate Management Team, SMB and the s.151 Officer.

5.     Implications

5.1.   None.

6.     Background papers

6.1.   None

Note: For sight of individual background papers please contact the report author


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